Market News

Cattle, hog futures lower at midweek

At the Chicago Mercantile Exchange, live and feeder cattle were lower, pressured by lower boxed beef and waiting for direct business to develop. February live cattle closed $.75 lower at $188.32 and April lives closed $.65 lower at $190.50.  January feeder cattle closed $2.35 lower at $256.95 and March feeder cattle closed $1.42 lower at $356.70. 

Direct cash cattle trade was pretty quiet on Wednesday.  Bids did surface at $190 live and $295 dressed, both in Nebraska.  The rest of cattle country was relatively quiet. Asking prices were at $192 to $194 live in the South, while nothing was floated out of the North.  Look for business to develop over the balance of the week.

At the Philip Livestock Auction in South Dakota, feeder steers 400 to 450 pounds were $15 higher, steers 450 to 500 pounds were $8 to $10 higher, steers 500 to 550 pounds were $10 to $15 higher, and steers 650 to 700 pounds were $10 to $15 higher.  Feeder heifers 400 to 450 pounds were $10 to $15 higher, heifers 450 to 500 pounds were $7 to $9 higher, heifers 500 to 550 pounds were $10 to $12 higher, heifers 550 to 600 pounds were $4 to $6 higher.  The USDA says demand was good for several load lots and many packages, all of which sold on a very strong, active market.  The offering was nearly entirely home raised, spring born calves with spring and fall vaccinations.  All carried light to moderate flesh.  Receipts were up from two weeks ago and on the year.  Feeder supply included 50% steers and 40% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 561 to 596 pounds brought $318 to $338 and feeder steers 651 to 693 pounds brought $294 to $313.  Medium and Large 1 feeder heifers 553 to 587 pounds brought $289 to $308.50 and feeder heifers 603 to 627 pounds brought $281 to $291. 

Boxed beef closed mixed with light to moderate demand for moderate offerings.  Choice was $2.50 lower at $308.33 and Select was $2.37 lower at $277.70.  The Choice/Select spread is $30.63. Estimated cattle slaughter was 125,000 – up 1,000 on the week and down about 1,500 on the year.

Lean hog futures ended the day lower with lingering concerns about domestic demand. February lean hogs closed $1.50 lower at $86.35 and April lean hogs closed $1.32 lower at $91. 

Cash hogs closed mixed with a solid negotiated run.  The industry continues to monitor the availability of market-ready hogs and hog weights as there is some concern that supplies are tighter heading into this month’s Quarterly Hogs and Pigs report.  Demand for U.S. pork on the global market continues to be strong, which is helping provide price support.  But, there are concerns about consistency in domestic demand. Barrows and gilts at the National Daily Direct closed $.73 higher with a base range of $78 to $90 and a weighted average of $87.62; the Iowa/Minnesota closed $1.06 lower with a weighted average of $87.63; the Western Corn Belt closed $1.14 lower with a weighted average of $87.63.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are $1 lower at $52. At Illinois, slaughter sow prices were $1 lower with moderate demand for heavy offerings at $38 to $50.  Barrows and gilts were steady with moderate demand for moderate offerings at $48 to $58.  Boars ranged from $20 to $30 and $15 to $25. 

Pork values were about steady – down $.01 at $89.60. Loins and butts were sharply lower.  Hams were about steady.  Ribs and bellies were higher. Estimated hog slaughter was 489,000 head – up 1,000 on the week and up about 3,500 on the week.